In the event that the sales increase, the organization will create additional working capital, and can undoubtedly accomplish its yearly objectives. As stated by the organization's profit and loss statement, the organization must control its overhead costs and lessen its selling expenditures. After forecasting the five years sales there is an increase in sales from 15%, 10%, 25% and 50%. The gross profit will also increase every year from $697,428 to
By using these an example this will allow Kudlers to properly train employees in customer service. Kudlers plans to spend $91,715 on new software to improve their current training plan. Kudlers has also started a budget for new customer relationship management system (CRM). Importance of Marketing Research Kudlers plans to increase their customer loyalty by offering high-margin services. Kudlers plans to do this by better understanding the customer needs, this can be obtained by tracking the purchases of the current cliental.
Further I would like to know the co-operative advertising that she intends doing. The display design and the manner in which the product will be shown to customers; I would like to know if the display will match with the advertising layout and them. The next question that I would like to know is the amount of discount the on-package coupon will provide the customer. The next point is that we want to see the trial size that will be used for
So the owner of the company Barb Shepard is hoping to sell the company soon. Barb Shepard also realized that the buyer will consider three main factors to determine a purchase price for the company: the absolute level of profits, the rate of growth in profits, and future potential growth in the market. As well, Barb Shepard needs to reduce bank debt as soon as possible as she has reached the maximum allowable level of debt. In order to improve the company’s development, three vice presidents of the company have suggested a strategic initiative in order to move the company forward in the next year. Introduce a new product, increase promotion, and raise prices and cut costs are three separate and distinct alternatives.
Comparative Ratio Analysis of Tootsie Roll Industries and Hershey Comapny A company’s general financial picture can be determined through a ratio analysis. Financial ratios have proved to be a useful tool for management, investors and creditors. Management uses financial ratios to develop ways to improve operating efficiency strategies for future growth and see how they stack up against the competition in their industry. Creditors and investors analyze ratios to determine a company’s financial strength and operating effectiveness in order to loan money or invest in them. Financial ratios have more impact when compared over several years to help identify trends.
The operational audit studies the specific parts of an organization with the purpose of measuring its performance. Performances are measured in terms of effectiveness and efficiency such as auditing shipping and receiving or the sales departments. The benefit of these types of audits can positively affect the profitability of the organization. The financial audits, which we are doing, consist of auditing financial statements. The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP).
The company will have to forge alliances with partners to participate in the loyalty program which will affect the sales department as well as upper management. Operational The loyalty program should be functional during the times that the company is open for business. It should passively collect customer data as customers swipe their loyalty cards during transactions. The system should make reports available to management so that they can focus on reducing the cost of orders and stock-outs while increasing customer purchase behavior with targeted offerings.
Internal auditors guarantee that the internal controls are sufficient and calculate the company’s financial and information systems for accurateness. A series of audits such as financial statements, fraud, compliance, and operational can be made with the hiring of an internal auditor. The most beneficial audit for Whitfields Company would be an operational audit. Operational Audits can be done if upper-level management thinks that there is a need for operational improvements. It is a review of management and how operating procedures work.
(Cascio, 2005) Keeping this in mind, our goal is to have a balance between different pay levels of the sales team, as well as a balance for the employees individually between intrinsic and extrinsic rewards, and financial and non-financial rewards. Salary will be set for each position, for every year an employee is in that position, there will be an opportunity for a pay raise, depending on how positive the employee’s performance appraisals have been for that year. This will be at the manager’s discretion, but each employee will be brought up in an upper management meeting and the reasons for the raise or no raise will be evaluated with the entire committee. Employees will also have an optional rewards package that includes security and health, payments for time not worked, and employee services. Group health care will be available through Kudler Fine Foods; employees will have their choice between a Health Maintenance Organization and a Preferred Provider Organization.
These salaries seem very competitive compared to their Competitor Wal-Mart who pays their employees 3% under Market average. (payscale.com) Along with base pay, Target employees are also eligible for Merit pay which is assessed every year through an employee overview, if the employee has proven themselves over the year then they can get a raise, if not they miss out on the opportunity. This is a great system it ties Merit pay and Seniority pay together. Every year you are eligible but you must prove yourself to receive the pay. Other pay increases that are available are through promotions and bonuses and they vary from year to year and on employee’s